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Global firms confident in China business

By REN XIAOJIN/ZHONG NAN | China Daily | Updated: 2018-03-04 11:52
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Foreign companies are optimistic about China's opening-up strategy and consider the country a priority investment destination.

2018 marks the 40th year since China implemented the opening-up strategy and opened its arms to qualified foreign companies to invest in the country. With China entering the new normal in economic development, the confidence in China's business climate and the level of opening-up has also been growing.

According to a recent survey conducted by the American Chamber of Commerce in China and the global management consulting firm Bain & Company, 46 percent of the surveyed companies from the United States doing business in China held a positive attitude toward further opening of China's market to foreign investment in the coming three years, up from 34 percent in 2016.

"Regarding the economy, there is cautious optimism that the new normal rate of growth is sustainable for the foreseeable future, providing opportunities for business to expand," said William Zarit, chairman of AmCham in China.

"Nearly six in 10 companies rank China among their top three investment priorities," said Stephen Shih, a partner of Bain & Co's Shanghai Office.

The consumption sector from the US, among other fields, particularly regarded China as their favored investment destination, as 76 percent of respondents ranked the country in their top three, up from 65 percent in 2017, "a significant increase from 2017", the report said.

The report also pointed out that investment is expected to recover in 2018, although growth may remain much lower than previous levels. Around 75 percent of the respondents expressed their intention to increase investment in China, while a third of the respondents planned to expand their investment in China by more than 10 percent this year.

German companies have expressed a similar vision on business prospects in China, according to a survey by the German Chamber of Commerce in China at the end of last year.

Most of the respondents from German companies in China recognized 2017 as an extremely successful year, especially the machinery and industrial equipment sectors.

"There is strong potential for more cooperation in various industries, particularly in high-tech manufacturing, digitalization, innovation and high-end consumer products," said Lothar Herrmann, chairman of the German Chamber of Commerce North China.

"We welcome the Chinese government's statements with regard to further opening-up, strengthening of market forces, as well as promoting foreign investment," Herrmann said. "We are looking forward to more concrete reform measures."

Most of German companies that participated in the survey ranked China among the top three priority markets. About 75 percent of the companies expect another bullish year in 2018.

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